Approximate Calculation of Order Fill Rate under Purchase Dependence

• 영문명: 구매종속성을 고려한 주문충족률의 근사적 계산
• 발행기관: 한국산업경영시스템학회
• 저자명: Changkyu Park(박창규)
• 간행물 정보: 『산업경영시스템학회지』제40권 제4호, 137~146쪽, 전체 10쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2017.12.31

영문 초록

For the competitive business environment under purchase dependence, this paper proposes a new approximate calculation of order fill rate which is a probability of satisfying a customer order immediately using the existing inventory. Purchase dependence is different to demand dependence. Purchase dependence treats the purchase behavior of customers, while demand dependence considers demand correlation between items, between regions, or over time. Purchase dependence can be observed in such areas as marketing, manufacturing systems, and distribution systems. Traditional computational methods have a difficulty of the curse of dimensionality for the large cases, when deriving the stationary joint distribution which is utilized to calculate the order fill rate. In order to escape the curse of dimensionality and protect the solution from diverging for the large cases, we develop a greedy iterative search algorithm based on the Gauss-Seidel method. We show that the greedy iterative search algorithm is a dependable algorithm to derive the stationary joint distribution of on-hand inventories in the retailer system by conducting a comparison analysis of a greedy iterative search algorithm with the simulation. In addition, we present some managerial insights such as : (1) The upper bound of order fill rate can be calculated by the one-item pure system, while the lower bound can be provided by the pure system that consists of all items; (2) As the degree of purchase dependence declines while other conditions remain same, it is observed that the difference between the lower and upper bounds reduces, the order fill rate increases, and the order fill rate gets closer to the upper bound.

목차

1. Introduction

2. Literature Review

3. Model Description

4. Greedy Iterative Search Algorithm

5. Computational Analysis

6. Conclusion

키워드

Approximate Calculation Order Fill Rate Purchase Dependence Quasi-Birth-and-Death Process